Estonia Tourism in the economy Tourism contributes directly around 4.6% of Estonia s GDP, rising to 6.6% if indirect impacts are also included. Export revenues from tourism amount to approximately EUR 1.7 billion annually, equivalent to 10% of total exports of goods and services in 2014. In 2014 6.2 million people visited Estonia, of which 2.9 million stayed overnight. Two thirds of the clients in accommodation establishments were foreign tourists. The tourism industry had been growing consistently. However, demand from Russia and Finland has seen some decline in the latter half of 2014, with an impact on the performance of the tourism sector. Tourism governance and funding National tourism policy and development activities are implemented by the Estonian Tourist Board, under the Enterprise Estonia Foundation, which in turn is administered by the Ministry of Economic Affairs and Communication. The activities of the ministry in the field of tourism include: Setting tourism policies and programmes and overseeing their implementation, Applying funding for tourism development programmes and projects from the state budget and from the European Union, Drafting tourism-related legislation and regulations, Participating in the activities of international tourism organisations. The Estonian Tourist Board undertakes international and domestic marketing and engages in product development. It also carries out market research in the main target markets, develops and administers the national tourist information system and participates in the work of international organisations. Other bodies and organisations that are involved at the national level are the Estonian Travel and Tourism Association, Estonian Hotel and Restaurant Association, Estonian Rural Tourism non-profit organisation, Tourism Foundations for north, south and west Estonia, Estonian Spa Association, and Estonian Convention Bureau. The overall budget for tourism development is stated in the National Tourism Development Plan for 2014-20 as approximately EUR 116 million, the majority of which is financed through Enterprise Estonia/Estonian Tourist Board. The budget of Enterprise Estonia/Estonian Tourist Board for tourism programmes in 2015 is EUR 6.6 million. The main sources of funding for tourism development are EU structural funds and the state budget. There are no specific tourism taxes. All the measures and activities of the Estonian 159
Estonia: Organisational chart for tourism bodies Ministry of Economic Affairs and Communications Tourism Industry Organisations National level Enterprise Estonia Estonian Tourist Board Regional level Regional Tourist Organisations Tourism Destinations Local level Local Tourist Information Centres and Destinations Municipalities Source: OECD, adapted from the Ministry of Economic Affairs and Communications, 2016. Tourist Board are evaluated through measurable indicators which are set in the National Tourism Development Plan for 2014-20 and its implementation plan. Tourism policies and programmes Tourism development contributes to the achievement of the objectives of the competitiveness strategy Estonia 2020, particularly by increasing the share of Estonia s exports in world trade, raising the employment rate, reducing youth unemployment and encouraging the development of international transportation routes. Promoting Estonia as a tourist destination and the growth in tourist numbers create the necessary preconditions for this economic contribution, alongside enhancing the development of new international transportation routes (e.g. new air routes, bus and train routes and cruise shipping). Tourism in Estonia faces a number of challenges. In the world context, awareness of Estonia both in general and as a travel destination is low. It lacks a clear and distinctive image amongst individual travellers and tour operators in western and southern Europe as well as in more distant countries. The majority of foreign tourists are visitors from nearby countries making short trips to Estonia (the average length of stay in accommodation establishments is only two days). One of the reasons for such a short length of stay is that Estonia lacks attractions and activities or information on them that would motivate tourists to stay in Estonia longer. Estonian tourism is characterised by excessive seasonality. While in summer there is a shortage of bed places, the average occupation rate in winter is low (annual average bed occupancy rate is below 30%). To level out seasonality it is necessary to create new tourism products and services that do not depend on the weather. In June 2013, the Estonian Government approved the National Tourism Development Plan 2014-20. Its main goal is to ensure competitive and sustainable development of Estonia s tourism sector. Strategic lines of action include the promotion of Estonia as a tourist destination, tourism information management, management of tourism product development, monitoring of tourism development potential, development of internationally attractive tourist sites, fostering international events and development of regional tourism products. 160
The sustainable development of the tourism sector relies on the application of principles of sustainable tourism. The underlying principle of the Development Plan is to build on hospitable and safe tourist routes accessible to people of all ages as well as for the disabled, by offering a high quality visitor experience. In order to achieve this goal, actions are identified in a four year implementation plan. In 2014 the Estonian Tourist Board, in co-operation with the tourism industry and regional tourism organisations, developed common marketing strategies for priority target markets with the highest tourism revenue potential, determining implementers, planned joint activities and budgets for two-year periods (Box 1.12). The strategies are based on research on target markets, the product offering, and Estonia s image as a tourist destination. Strategies include an action plan for managing demand in target markets, while representing the interests of the state, destinations and operators. Implementation of the strategies is financed by all implementers through prior agreement. Market based strategies are drawn up on the precondition that there are enough organisations and operators interested in marketing activities in the target markets. Product development strategies will be drawn up, reflecting existing product offers and opportunities and the demands of target markets. The latter will be analysed and evaluated, with guidelines for operators on products that meet market needs. Strategies will be developed and implemented by operators and other interested industry parties, including co-operation networks. In 2014 a support measure for the development of a small harbour network was launched, implementing priorities in both the National Tourism Development Plan and the National Transport Development Plan 2014-20. Another priority area for action is supporting international conferences and cultural and sporting events, in order to increase the number of overnight visits by foreign tourists. An additional purpose of this action is to reduce the seasonality of tourism. 161
Statistical profile Table 1. Estonia: Domestic, inbound and outbound tourism 2010 2011 2012 2013 2014 TOURISM FLOWS, THOUSAND Domestic tourism Total domestic trips.......... Overnight visitors (tourists) 838 918 966 1 041 1 104 Same-day visitors (excursionists).......... Nights in all types of accommodation 1 497 1 651 1 721 1 825 1 890 Hotels and similar establishments 1 025 1 117 1 151 1 220 1 290 Specialised establishments.......... Other collective establishments 472 534 571 604 600 Private accommodation.......... Inbound tourism Total international arrivals 4 670 5 280 5 306 6 113 6 193 Overnight visitors (tourists) 2 372 2 665 2 744 2 873 2 918 Same-day visitors (excursionists) 2 298 2 615 2 562 3 240 3 276 Top markets Finland 833 841 829 895 916 Russian Federation 142 203 266 305 275 Germany 84 104 111 102 113 Latvia 73 85 101 105 113 Sweden 81 86 78 74 72 Nights in all types of accommodation 3 204 3 749 3 823 3 909 3 919 Hotels and similar establishments 3 003 3 478 3 499 3 537 3 516 Specialised establishments.......... Other collective establishments 201 271 324 372 404 Private accommodation.......... Outbound tourism Total international departures 3 510 3 806 3 846 3 706 3 841 Overnight visitors (tourists) 2 468 2 667 2 672 2 613 2 712 Same-day visitors (excursionists) 1 042 1 138 1 174 1 093 1 129 Top destinations Finland 574 595 647 578 576 Latvia 174 190 203 228 247 Russian Federation 315 343 249 222 233 Sweden 146 157 167 155 164 Germany 106 121 137 137 139 TOURISM RECEIPTS AND EXPENDITURE, MILLION EUR Inbound tourism Total international receipts 1 072 1 204 1 240 1 524 1 679 International travel receipts 809 897 954 1 226 1 366 International passenger transport receipts 263 307 286 298 313 Outbound tourism Total international expenditure 546 675 747 884 934 International travel expenditure 478 579 620 751 810 International passenger transport expenditure 68 96 127 133 124.. Not available Disclaimer: http://oe.cd/disclaimer Source: OECD Tourism Statistics (Database). 1 2 http://dx.doi.org/10.1787/888933319861 162
Table 2. Estonia: Enterprises and employment in tourism Number of establishments 1 Number of persons employed 2014 2010 2011 2012 2013 2014 Total............ Tourism industries............ Accommodation services for visitors 1 419 5 500 5 900 5 900 6 100.. Hotels and similar establishments............ Food and beverage serving industry.. 12 600 13 100 14 200 14 700.. Passenger transport............ Air passenger transport............ Railways passenger transport............ Road passenger transport............ Water passenger transport............ Passenger transport supporting services............ Transport equipment rental............ Travel agencies and other reservation services industry.. 1 500 1 600 1 500 1 800.. Cultural industry............ Sports and recreation industry............ Retail trade of country-specific tourism characteristic goods............ Other country-specific tourism industries............ Other industries.............. Not available Disclaimer: http://oe.cd/disclaimer 1. Data for food and beverage, travel agencies and other reservation services industry refer to number of enterprises. Source: OECD Tourism Statistics (Database). 1 2 http://dx.doi.org/10.1787/888933319872.. Not available Disclaimer: http://oe.cd/disclaimer Table 3. Estonia: Internal tourism consumption Million EUR 2010 Domestic tourism consumption Inbound tourism consumption Internal tourism consumption Total 150 1 036 1 423 Consumption products 145 924 1 305 Tourism characteristic products 122 634 960 Accommodation services for visitors 19 163 267 Food and beverage serving services 25 198 223 Passenger transport services 43 207 332 Air passenger transport services 27 44 91 Railways passenger transport services 2 2 8 Road passenger transport services 5 16 34 Water passenger transport services 9 145 199 Passenger transport supporting services.. 7 7 Transport equipment rental services 0 2 27 Travel agencies and other reservation services industry 29 20 57 Cultural services 2 27 29 Sports and recreation services 1 4 6 Country-specific tourism characteristic goods...... Country-specific tourism characteristic services 2 6 14 Other consumption products 23 290 345 Tourism connected products 11 28 54 Non-tourism related consumption products 12 262 291 Non-consumption products...... Source: OECD Tourism Statistics (Database). 1 2 http://dx.doi.org/10.1787/888933319884 163
From: OECD Tourism Trends and Policies 2016 Access the complete publication at: http://dx.doi.org/10.1787/tour-2016-en Please cite this chapter as: OECD (2016), Estonia, in OECD Tourism Trends and Policies 2016, OECD Publishing, Paris. DOI: http://dx.doi.org/10.1787/tour-2016-15-en This work is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of OECD member countries. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgment of OECD as source and copyright owner is given. All requests for public or commercial use and translation rights should be submitted to rights@oecd.org. Requests for permission to photocopy portions of this material for public or commercial use shall be addressed directly to the Copyright Clearance Center (CCC) at info@copyright.com or the Centre français d exploitation du droit de copie (CFC) at contact@cfcopies.com.